Archive | December, 2012

Top 10 Sovereign Wealth Fund Game-Changers of 2012

2012 proved to be a dynamic year for sovereign wealth funds in terms of policy decisions and investment strategies. Notably, a number of sovereign funds were created, especially in resource rich nations like Angola. Our staff has compiled a list of the top ten game-changers that will set the tone for sovereign wealth funds in […]

Asian Central Bankers Worry About Western QE Policy

Central bankers from around the globe, especially in Asia are concerned about the possible effects of relying too much on quantitative easing (QE) policies. This comes after the Federal Reserve embarks on an ambitious buying program of mortgages and treasuries. Quantitative easing poses risks for investors as the man-made increase of asset prices creates market […]

SOFAZ Buys Gallery Actor in Moscow

The State Oil Fund of the Republic of Azerbaijan (SOFAZ) purchased their third property investment, this one in Moscow’s central business district at 16 Tverskaya Street for US$ 133 million. The Gallery Actor is a mixed-use office and retail complex that was owned by Metropolitan Insurance Group, part of the VTB Group. Built in 1881, […]

RDIF and State Bank of India to Invest up to 1 Billion USD Each in Joint Projects

The press release states, “Russian Government promoted sovereign wealth fund the Russian Direct Investment Fund (RDIF) and State Bank of India (SBI) have created a new co-investment consortium in order to expand bilateral economic cooperation. A memorandum of understanding was signed today as part of Russian President Vladimir Putin’s official visit to India. The document […]

Constructing Fast Growing Sovereign Funds

Sovereign wealth funds (SWFs) are a unique class of public investment organizations. The majority of SWFs were created to avoid the Dutch Disease, earn higher returns than current reserve management, act as an intergenerational savings vehicle, and/or so on. Reliable sources of capital and a high degree of independence from government are two major factors […]

London Dominates SWF Overseas Real Estate Core Portfolios

Sovereign wealth funds that allocate to international real estate, nearly all, have exposure to the London real estate market. It outshines the Los Angeles, New York City, and Paris institutional core markets in terms of SWF dollars invested. With all the economic issues facing Continental Europe, foreign investors see London as a prime safe-haven market. […]

Transparency Still Remains Elusive for Most Sovereign Wealth Funds

This article was contributed by the Fundo Soberano de Angola (FSDEA). Despite the obvious developments that Sovereign Wealth Funds (SWF) have brought both to the global economy and their home countries, there can be no denying that the term SWF is often met with suspicion and negative attention. There is a plethora of reasons why […]

SOFAZ Buys Paris Property in Place Vendôme

The State Oil Fund of Azerbaijan (SOFAZ) has made its second European real estate purchase. The property located in Paris, 8 Place Vendôme, was purchased for €135 million from AXA Real Estate Investment Managers. The prime office and retail property attracts strong rental income. The building was constructed in 1712 and was built to honor […]

Norway’s SWF Buys 50% of Logistic Property Portfolio from Prologis

The press release states, “The Norwegian Government Pension Fund Global will through a joint venture with Prologis buy 50 percent of a portfolio of logistic properties for 1.2 billion euros, or about 8.9 billion kroner. The seller is Prologis, which will retain the remaining 50 percent of the portfolio and manage the properties on behalf […]

Q&A with Sean Glodek, Director, Russian Direct Investment Fund

This interview will appear in the 4Q Y2012 (Jan 2013) issue of the Sovereign Wealth Quarterly. This is a Q&A with Sean Glodek, Director, Russian Direct Investment Fund. 1. What was the reason for creating the Russian Direct Investment Fund (RDIF)? The Russian Direct Investment Fund (RDIF) is a $10 billion private equity fund established […]

Recalibration of National Development Goals and SWFs

Sovereign wealth funds are built for a bundle of purposes. Funds like the Mubadala Development Company are active in promoting national development goals such as education and industry diversification. A cadre of new sovereign wealth funds is being cropped with national economic goals in mind. These funds desire investments by their SWFs to help achieve […]

PSP Investments to Become Partner in Kaingaroa Forest

The press release states, “The Public Sector Pension Investment Board (PSP Investments), one of Canada’s largest pension investment managers, has recently entered into an agreement to purchase a 30% participation in the Kaingaroa Forest from Harvard Management Company, the endowment fund of Harvard University. Harvard will retain a 28.75% stake in Kaingaroa Forest after completion […]

QE for USA Continues, Record Ownership Level for U.S. Treasuries in October

In October 2012, the foreign ownership level of U.S. Treasuries rose to a record level. According to the U.S. Treasury Department, total foreign holdings of U.S. Treasuries grew to US$ 5.48 trillion in month of October. This is 0.1% up from September. Largest Foreign Holders China – US$ 1.16 trillion Japan – US$ 1.13 trillion […]

Central Huijin Invests 20 Billion Yuan in China Export and Credit Insurance Corp

Export credit financing is one instrument used by governments to support domestic exporters. In China, export financing and insurance are directed through three organizations, China’s Eximbank, the China Development Bank (CDB), and the China Export & Credit Insurance Corporation (Sinosure). China has poured hundreds of billions in the last few years to achieve an aggressive […]

SOFAZ Embarks on London Real Estate

The State Oil Fund of the Republic of Azerbaijan (SOFAZ) purchased their first property investment in London’s West End for £177.35. SOFAZ bought 78 St James’s Street, an office complex, from RREEF Real Estate, the real estate investment arm of Deutsche Bank’s Asset and Wealth Management division. The St. James’s part of London is trendy […]

New Zealand Superannuation Fund Purchases 35% Stake in Datacom

The press release states, “The New Zealand Superannuation Fund has reached a conditional agreement to purchase New Zealand Post’s 35% stake in technology services company Datacom for $142 million. GM Investments Matt Whineray said Datacom was a New Zealand success story with further growth potential both locally and overseas. “Datacom’s conservative balance sheet and long-term […]

Global Reserves Crawl Towards Emerging Market Currencies

Since 2003, global reserves have more than doubled. There has been a gradual shift from U.S. dollars to euros over this time period; however, U.S. dollars still dominate in proportion at greater than 60% of total world reserves. In addition, emerging markets’ accumulation of reserves has outpaced advanced economies. Exports have contributed to emerging markets’ […]

China Removes QFII Ceiling for Sovereign Wealth Funds and Central Banks

The government of China has removed the ceiling on capital market investments for international sovereign wealth funds and central banks. China is trying to entice long-term foreign ownership in Chinese equities. According to revised regulations by China’s State Administration of Foreign Exchange (SAFE), sovereign wealth funds, central banks, and monetary authorities may exceed the US$ […]

Canary Wharf Group and Qatari Diar to Revitalize South Bank

According to the press release, “Joint venture developers Canary Wharf Group and Qatari Diar have unveiled their proposed plans, which will re-vitalise the area with high quality architecture and much improved public spaces. A mix of offices, homes and retail space will integrate with open and attractive public areas, while new pedestrian routes will connect […]

China’s NSSF Buys Private Placement Shares in GD Power Development Co Ltd

China’s National Social Security Fund (NSSF) will purchase 2 billion yuan (US$ 317.98 million) worth of A shares of common stock in GD Power Development Co Ltd in a private placement. The NSSF will purchase 50% of the company’s newly issued shares. The NSSF will have a 5.32% stake in the company, allowing the NSSF […]